Good morning

This article was published yesterday in Landlordzone News. It concerns a private landlord operating in the Manchester area, whose tenant failed to report Local Housing Allowance (LHA) rent increases following the issue of Section 13 (rent increase) notices in 2020 and 2024, when the Government increased the rate.

As the article explains, the landlord, using the “Direct Payment” facility, notified DWP of the increased charge. However, it ignored the notifications and continued paying the housing costs at the pre-2020 level. The landlord accepted DWP’s decision at that time.

DWP insists its hands are tied until the tenant reports the change via their journal. But conveniently overlooks the fact, landlords are obliged to notify changes, when in receipt of Direct Payments. When they do so, DWP should act to remedy any under/overpayments.

I’ve been successfully challenging this malpractice for years, both for social and private landlords. Around three years ago, DWP finally conceded the point by allowing social landlords (councils and housing associations) to update the annual rent increase via the social landlord “portal” when their tenant(s) failed to report the change themselves via their online journal. Despite this, some tenants are still being paid historic rent charges and accruing rent arrears.

Universal Credit legislation and DWP guidance support my view, yet DWP repeatedly misleads landlords into believing nothing can be done to remedy what are “housing costs” underpayments. They also make it difficult for landlords by not providing a dedicated email address to raise such issues. Because of this, many resort to phoning the UC general enquiries number 0800 328 5644 but this rarely produces the desired effect. The most effective way to communicate is by email to the local Partnership team or using email – correspondence@dwp.gov.uk

In my briefing note to landlordzone, I included an extract from an email sent to Neil Couling, DWP’s Director General, urging him to intervene. It said:

“DWP’s “Decision Maker” can supersede an award of their own accord, especially when the information is notified by a third-party source, e.g., data-matching, local authority, or landlord receiving “Direct Payments” as they have a legal obligation to report changes when they have a material impact on the tenant’s housing cost award, which is the case here. 

DWP provides guidance to staff. It states: “Decision Maker’s initiative” – Where a DM supersedes on their initiative to deal with a change of circumstances and the result is advantageous to the claimant, the supersession takes effect from the first day of the Assessment Period in which action was started.”

Using information I provided during an in-house training session, one of my RSL landlords secured a one-year backdate of the April 2024 rental charge underpayment. Although pleased with that, they’re now pursuing, with the support of their tenant, a further backdate to the date they first raised this with DWP using the portal.

If you have any tenants who are accruing rental debt due to this issue, and previously asked DWP to act, you can still pursue this matter directly with DWP and secure payment to reduce or extinguish the arrears.

If you require any further information, please get in touch via bill@ucadvice.co.uk or 07733 080 389.

Regards

Bill Irvine

UC Advice & Advocacy Ltd

www.ucadvice.co.uk